How To File A Successful Tulsa Oklahoma Bankruptcy

How to Set Yourself Up For a Successful Tulsa Oklahoma Bankruptcy

The months and perhaps even years that precede a bankruptcy filing in Oklahoma are usually rather difficult times. As finances become more and more unstable, stress continues to pile up along with the bills. The feeling of running out of options can be overwhelming, as can coming to the realization that bankruptcy is a necessary next step if you want to regain control of your seemingly hopeless financial situation. Because the period of time that precedes a bankruptcy filing is often so tenuous, people sometimes make financial decisions that seem like good ideas at the time, but later turn out to be problematic.

Your financial choices in the three to six months prior to your bankruptcy will have an effect on whether your Tulsa bankruptcy filing will be successful. The following are common examples of financial decisions which could have a negative impact on your bankruptcy proceedings, so avoid them at all costs. If you are considering filing for bankruptcy and also, making financial decisions that you do not see listed below, ask an Oklahoma bankruptcy attorney whether they could have an effect on your bankruptcy proceedings.

Common Mistakes People Make Before Filing Bankruptcy

One common mistake that people make before filing for bankruptcy is cashing their retirement plans in order to pay down their debts. It is easy to see why people do this, because if enough debt can be paid down or eliminated, then bankruptcy could be avoided. Unfortunately, cashing in a retirement account in order to avoid bankruptcy compromises your future financial security. If you can avoid bankruptcy by using some other way to pay down or eliminate some of your debts, then do that. If not, leave your retirement account intact and file for bankruptcy. It is likely that you will be able to keep your retirement account, because most types of retirement accounts are exempt from liquidation during the bankruptcy proceedings.

If you are planning to file for bankruptcy, it is important that you not open up any new credit accounts, including home equity lines of credit and second mortgages. If a creditor can show that you incurred a debt knowing that you would not be able to pay it, you will not be able to discharge it. Along the same lines, if you use your existing credit accounts in the months prior to bankruptcy, be careful what you buy. Charges for luxury goods and balance transfers are not likely to be discharged if those charges were made shortly before filing for bankruptcy.

Some people borrow money from family and friends prior to filing for bankruptcy. If you have borrowed money from a friend or family member, you must let them know that while you do intend to repay your debt to them, you are unable to do so until after your bankruptcy proceedings are complete. If you make any payments to friends or family members in the twelve months prior to filing for bankruptcy, the bankruptcy court will reclaim that money from them and use it to pay your creditors. If you are tempted to honor debts to friends and family members by giving them some of your assets instead of paying them, don’t do it. Just like payments, the items can be reclaimed, and the bankruptcy court can sell them in order to pay your creditors.

You can set yourself up for a successful Oklahoma bankruptcy by making well-reasoned financial choices prior to filing for bankruptcy. If you have questions about how specific financial decisions could affect your bankruptcy, a knowledgeable Oklahoma Bankruptcy Attorney can help. We offer a free initial consultation where we can answer your questions, evaluate your needs and explain your options.  We invite you to contact us at South Tulsa Bankruptcy Lawyers or fill out our online form today!

How To File A Successful Tulsa Oklahoma Bankruptcy

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